> ## Documentation Index
> Fetch the complete documentation index at: https://docs.x402layer.cc/llms.txt
> Use this file to discover all available pages before exploring further.

# Fee Distribution

> How trading fees from launched tokens are distributed between creators and supporters

# Fee Distribution

When a campaign's token launches, trading fees generated on every buy and sell are distributed to fee-share holders. The distribution is configured at launch time based on the campaign's fee option and cannot be changed afterward.

## Fee Options

Campaign creators choose one of three fee distribution models when creating a campaign:

### Supporters Only (Default)

**100% of fee-share revenue goes to contributors.**

The first 100 unique contributor wallets each receive a share proportional to their total contribution amount relative to the total raised. This is the default and most common option — it maximizes the incentive for supporters.

**Example:** A campaign raises \$10,000 total.

* Contributor A gave \$2,000 → receives 20% of trading fees
* Contributor B gave \$500 → receives 5% of trading fees
* Remaining contributors share the rest proportionally

### Creator Only

**100% of fee-share revenue goes to the campaign creator.**

The creator's wallet is registered as the sole fee-share recipient. Supporters contribute to fund the project but do not earn trading fee revenue.

### Creator–Supporter Split

**Fee revenue is split between the creator and supporters at a custom ratio.**

The creator sets a percentage (e.g., 30%) at campaign creation. That share goes to the creator's wallet, and the remaining share is distributed proportionally among the first 99 contributors.

**Example:** A 30/70 split on a \$10,000 campaign:

* Creator receives 30% of all trading fees
* Contributor A gave $2,000 of $10,000 → receives 70% × (2,000/10,000) = 14% of trading fees
* Other contributors share the remaining supporter allocation proportionally

## How Shares Are Calculated

Fee shares are measured in **basis points (BPS)** out of a total pool of 10,000 BPS (representing 100%).

<Steps>
  <Step title="Determine the supporter pool">
    For **Supporters Only**: the full 10,000 BPS goes to supporters.

    For **Creator–Supporter Split**: the creator's BPS is calculated as `floor(fee_split_pct / 100 × 10,000)`, and the remainder goes to the supporter pool.
  </Step>

  <Step title="Identify eligible wallets">
    Up to 100 contributor wallets are eligible (99 if using creator–supporter split, since one slot is used by the creator). Contributors are ranked by total contribution amount. If a wallet contributed multiple times, those amounts are merged.
  </Step>

  <Step title="Calculate per-wallet BPS">
    Each wallet's BPS = `floor((wallet_total / total_contributed) × supporter_pool_bps)`.

    Due to floor rounding, there may be a small remainder — this is added to the top contributor's share.
  </Step>

  <Step title="Register on-chain">
    The final BPS mapping is submitted to the Bags.fm fee-share contract on Solana. Once registered, fee-share percentages are immutable.
  </Step>
</Steps>

## Eligibility Rules

| Rule                          | Detail                                                          |
| ----------------------------- | --------------------------------------------------------------- |
| Maximum eligible contributors | 100 (99 if using creator split)                                 |
| Selection criteria            | Ranked by contribution amount (highest first)                   |
| Duplicate wallets             | Merged — total contribution across all transactions             |
| Minimum contribution          | \$2.50 USDC                                                     |
| When eligibility is checked   | At contribution time; slots are first-come within the 100 limit |

<Note>
  Fee-share eligibility is determined by the number of unique wallets that have contributed, not the number of transactions. The same wallet contributing multiple times counts as one slot.
</Note>

## Fund Distribution Breakdown

Separately from trading fee distribution, campaign creators can define a **fund distribution plan** that shows supporters how the raised USDC will be used. This is a transparency feature — it's displayed on the campaign page but does not enforce on-chain spending.

| Constraint          | Value         |
| ------------------- | ------------- |
| Minimum portions    | 2             |
| Maximum portions    | 6             |
| Minimum per portion | 5%            |
| Label max length    | 40 characters |

**Example:**

* Development: 40%
* Marketing: 25%
* Operations: 20%
* Community Rewards: 15%

## Fees at a Glance

| Item                       | Detail                                     |
| -------------------------- | ------------------------------------------ |
| Trading fee tiers          | 2% (default), 0.25%→1%, 1%→0.25%, 10%      |
| Fee-share pool             | 10,000 BPS (100%)                          |
| Max fee-share recipients   | 100 wallets                                |
| Fee-share duration         | Perpetual — as long as the token is traded |
| Can fee shares be changed? | No — locked at token launch                |